discoverIE Group — Back in growth mode

discoverIE reported solid H126 results, with adjusted EPS growth of 6% on reported revenue growth of 2.5%. Organic revenue growth has resumed at the group level and in three out of the four operating units, and two acquisitions have just been announced. Having managed the group to grow earnings and optimise cash during an 18-month period of organic revenue reduction due to industry-wide customer destocking, the company is well-positioned to benefit as demand recovers, we believe. We see the opportunity for the wide discount to peers to narrow now that the group is back on a top-line growth trajectory.